What is a Takeoff in Construction: Complete Guide

An estimation is forecasting the resources required to complete a project, and an accurate estimate ensures you don’t overcharge or undercharge when you submit a bid for a construction project.

Most professional contractors or estimators understand that material estimation is the first step in a project bid; hence a material takeoff is a comprehensive list of the materials required for a project as well as their associated quantities.

Understanding Construction Takeoffs

Without getting started with anything too technical, let’s clear off the basics. 

Definition and basic concepts

While some call it a construction takeoff, others also refer to it as a material takeoff or quantity takeoff.

A takeoff in construction is a process where all the materials related to the completion of a construction project are listed alongside the estimated quantity and costs. Material takeoff is a critical step in the project estimating process and is practiced by contractors within and outside the construction industry.

Key components of a takeoff

Determining the accurate quantity and cost of all the materials needed for a project is a time-consuming but necessary process. Contractors use construction takeoffs when preparing a bid for a construction project, creating an estimate for a job or determining the quantity of each material to buy.

A construction takeoff for a construction project involves two basic steps. The first is listing all the materials needed for the task, no matter how insignificant they seem at first. This list should also include the dimensions and quality of each material set.

Once you’re done with this step, you’re more than halfway through your takeoff. In fact, some contractors believe the takeoff process ends here, while others believe that prices should be added to each material. This is where the second step comes in. The second step involves costing. This is when you add numbers to the listed material and calculate the total.

This two-step method is ideal for residential construction estimating software. However, it might be a bit trickier trying to determine the costs, quality and quantity requirements on larger projects. In such cases, the best way to approach your construction takeoff approach should be to consult with engineers, project managers, and architects to get complete accuracy.

The Difference Between Estimation and Takeoff

A takeoff and an estimation are two different processes, although they seem similar. They both involve determining and calculating resources needed in construction, but that’s where it ends.

A takeoff is a process of listing out the necessary materials required for a project, with an estimated quantity for each. When it is created for the estimation process (which it almost always is), it features the unit cost of each material.

On the other hand, an estimate is an extensive process that determines the overall cost of the project. When drafting a takeoff in the construction industry, the goal is to quantify resources, while an estimate builds on this, as well as other project expenses, to give a full report on the estimated cost for the entire project. Therefore, there can’t be an estimate without an initial construction takeoff.

Various Uses of the Takeoff in Construction

Now you know what a construction takeoff is, what it includes, and why it’s important to make one for every project, let’s see where and how they can be used in the industry.

• Submitting a bid

  A flawed bid is a deal-breaker for any client hiring a contractor. Any bid you submit must be detailed enough to impress your client but also simple and easy to understand.

  An accurate takeoff is the bedrock of a good bid, and a construction takeoff is simply a process that helps contractors predict the approximate material costs. Before submitting your bid, ensure you know how much of each item is required to accurately predict the cost to avoid underbidding and losing profits or overbidding and missing out on the project.

• Drafting an estimate

  Once you’ve performed your construction takeoff and now have a list of the materials required for your project and the associated cost, the next step is to create an accurate estimate for the entire cost of the project by compiling the material cost and adding additional expenses.

• For purchase decisions

  Whenever construction projects require purchasing orders for raw materials, construction professionals use the takeoff process to understand how and make practical purchase decisions.

Importance of Accuracy of Construction Takeoff

An accurate takeoff translates to accuracy in the final cost estimate and gives both the client and contractor a clear overview of the total material cost for a project. Therefore, it is important that your construction takeoff is as precise as possible.

Contractors are generally responsible for any costs they didn’t include at the bidding stage and can be penalized for missing project deadlines. Contractors with an accurate takeoff can lower their financial risks and improve their competitive edge.

What Is Included in a Construction Takeoff?

A construction takeoff includes all the required materials to complete a project and if you’re quite new to estimating, knowing what to include in your takeoff report gets confusing sometimes. Below are the materials that will most certainly be part of your construction takeoff report:

• Steel
• Concrete
• Sand
• Rebar
• Wood
• Tiles and other flooring materials
• Pipes
• Electric cables
• Light fixtures
• Secondary industrial supplies to help work process on the site

Pro tip: Start your project requirement list with physical materials that form a core part of the project first.

What Is Excluded From a Construction Takeoff?

A construction takeoff should exclude the project expenses below:

• Labor costs
• Transportation costs
• Rentals and equipment charges
• Recruitment costs
• Office overheads

The Construction Takeoff Process

Takeoff is an important part of estimating costs by enlisting the number of materials required for a project. It enables accurate budgeting, cost savings, and efficient resource allocation if done right. 

Let’s quickly see how you can get started with the construction takeoff process.

Step-by-step guide

Step 1: The first step is to ensure that all the mentioned details are understood properly. Carefully review all blueprints, drawings, and project specifications.

Step 2: Group and list all the main materials needed, such as concrete, steel, drywall, flooring, plumbing, and electrical components.

Step 3: Depending on the scope of the project quantify each material precisely based on length, area volume, and item count.

Step 4: Calculate the total quantity of each material type required after completing the measurement.

Step 5: Try to keep the required margin slightly higher than what’s required. Considering the waste factor, this helps to finish the project without delays.

Step 6: Use a clear and concise format for cost estimation, properly organized by material type, area of application, and project phase.

Step 7: Accuracy is crucial in takeoff calculations, as errors can lead to budget overruns. A final review helps confirm all measurements and calculations are correct.

Types of Construction Takeoffs

There are mainly two types of construction takeoffs:

• Manual takeoffs
• Digital takeoffs

Manual vs. Digital methods

Manual takeoff

For manual takeoffs, the contractor or estimator studies the project’s blueprints and figures out the material they need based on the project scope. They also make rough guesses on the quantity based on the blueprint measurements. This kind of material takeoff is usually created by a highly experienced contractor. However, they tend to be quite tedious and time-consuming.

Also, manual takeoffs may not be entirely accurate, even with a skilled and experienced estimator. It requires complex mathematical equations and statistical calculations, which can make the estimation process quite tedious.

Digital takeoffs

Nowadays, there are many contractor estimate software available in the market. These apps can help you prepare takeoff documents within a few simple steps and have other tools to make the estimating process easier.

In some cases, you can input your project scope to a digital takeoff software or building information modeling software for a recommended list of materials. Not only are digital takeoffs easy and quick, but they are also usually more accurate than the manual method.

Specialized takeoff applications

Specialized takeoff applications are designed to provide advanced tools that can ease the construction process with estimating and planning. These are not your traditional applications as they improve speed and accuracy for every complex or simple project. 

Let’s take a quick look at the primary functions of specialized takeoff applications.

• Takeoff apps can quickly measure areas and volumes from digital blueprints, saving time and reducing errors, which is crucial for budgeting and planning.
• Many apps offer libraries of materials with set measurements and costs, making it easy for users to select items helping contractors speed up their selection and maintain consistency.
• Specialized takeoff applications integrate with cost estimation software, enabling accurate project estimates based on real-time prices.
• Some takeoff applications provide cloud storage and real-time collaboration, helping large or remote teams stay updated and communicate effectively.
• Advanced takeoff software integrating with BIM uses 3D models to extract project details, enhancing precision and revealing potential conflicts early in planning.

Conclusion

Whether it is a small project or large, construction takeoff is an integral part of the construction cost estimation process. A detailed outline of the project material requirements, as well as their costs, is the first step to creating a winning bid. And every contractor should know how to create a construction takeoff. However, it’s difficult to ensure accuracy with manual takeoffs, no matter the level of experience. Therefore, you should use estimating software to create accurate estimates in a relatively shorter time.

InvoiceOwl helps in creating accurate construction takeoffs and can analyze records from previous estimates for future projects. With InvoiceOwl, contractors can handle more projects simultaneously, eradicate estimating errors and create estimates and invoices at lightning speed.

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